AIA Billings Index Falls to Record Low

Washington, DC, Dec. 17, 2008--The Architectural Billings Index, a forward- looking gauge of U.S. nonresidential construction activity fell again last month to its lowest in its 13-year history.

Tumbling tax revenues, tight credit markets and a sputtering economy have put many plans for new schools, hospitals and other institutions on hold.

The monthly index, compiled by the American Institute of Architects, slipped 1.5 points to 34.7 in November, down from 36.2 in October.

An reading below 50 indicates deteriorating demand for the services of the design firms at the front end of the commercial building process and suggests weakness in nonresidential construction that will extend well into 2009.

A separate measure of inquiries for new projects fell to 38.3 in November, also a historic low, from 39.9 in October.

"With mounting job losses, declines in retail sales, and travel cutbacks, the need for new commercial facilities has dropped considerably recently," AIA Chief Economist Kermit Baker said in a statement.

"What's just as troubling is that the institutional sector -- schools, hospitals and public buildings -- is also beginning to react to tighter credit conditions and a weakening economy."

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